America West US Airways Merger Clears First Hurdle

24th Jun 2005

America West Holdings Corp. and US Airways Group Inc. today
confirmed that the airlines have been informed by the U.S. Department of
Justice that the Department has completed its review of the proposed merger of
the two airlines and that the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 will expire at midnight tonight without a
formal request from the Department for additional information (commonly
referred to as a “second request”).On May 19, 2005, America West and US Airways announced an agreement to
merge and create the first full-service nationwide airline, with a
consumer-friendly pricing structure offering a network of low-fare service to
more than 200 cities across the U.S., Canada, Mexico, Latin America, the
Caribbean and Europe, and amenities that include a robust frequent flyer
program, airport clubs, assigned seating and First Class cabin service. The
airlines will operate under the US Airways brand.
When completed, the merger will be anchored by $500 million in new equity
investment that has already been announced, as well as other potential equity
and financing sources still under negotiation, and participation by suppliers
and business partners that will provide the company with more than
$1.5 billion in cash at the time of the transactions closing.
The merger remains subject to other approvals, including America West
shareholders, US Airways creditors and the U.S. Bankruptcy Court, the
Securities and Exchange Commission, the U.S. Department of Transportation and
the Air Transportation Stabilization Board.
The two companies said today in a joint statement that they remain on
track to secure all necessary regulatory approvals this summer, with the goal
of closing on transaction by early fall.——-